Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to note the release of an ASX announcement titled “Havieron Project receives regulatory and funding approval” by Newcrest Mining Ltd (“Newcrest”) earlier today.
Which highlights that the Newcrest Board has approved A$146 million (~US$112 million), on a 100% basis, for the construction of the box cut, exploration decline and associated surface infrastructure at the Havieron Project in Western Australia, which it owns in joint venture with Greatland. This funding approval by the Newcrest Board follows receipt of the necessary regulatory approvals to commence these construction activities (as announced on 29 December 2020).
As announced on 30 November 2020, Greatland, and its joint venture partner Newcrest, entered into a Loan Agreement which will provide Greatland with access to loan facilities totalling US$50 million. This Loan Agreement will be used to fund Greatland’s share of early works and growth drilling activities up to the completion of a Pre-Feasibility Study and, thereafter, its joint venture expenditure requirements towards the completion of a Feasibility Study. Newcrest expects to complete a Pre-Feasibility Study for the project by late calendar year 2021.
Work is ongoing to finalise the Water Management Plan for the early works program and to progress further approvals and permits which will be required to commence development of any operating underground mine and associated infrastructure at the Havieron Project. In addition, the development of any underground mine at the Havieron Project will also be subject to further studies, Board approvals and a positive decision to mine.
Notes for Editors:
Greatland Gold plc is a London Stock Exchange AIM-listed (AIM:GGP) natural resource exploration and development company with a current focus on precious and base metals. The Company has six main projects; four situated in Western Australia and two in Tasmania.
In March 2019, Greatland signed a Farm-in Agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland’s Havieron gold-copper deposit in the Paterson region of Western Australia. The Havieron Project is operated by Newcrest under a Joint Venture Agreement with Greatland Gold plc. Newcrest can earn up to a 70% joint venture interest through total expenditure of US$65 million and the completion of a series of exploration and development milestones in a four-stage farm-in over a six year period that commenced in March 2019. Newcrest may acquire an additional 5% interest at the end of the farm-in period at fair market value.
The Joint Venture Agreement includes tolling principles reflecting the intention of the parties that, subject to a successful exploration program and feasibility study and a positive decision to mine, the resulting joint venture mineralised material will be processed at Telfer, located 45km west of Havieron.
Greatland is seeking to identify large mineral deposits in areas that have not been subject to extensive exploration previously. It is widely recognised that the next generation of large deposits will come from such under-explored areas and Greatland is applying advanced exploration techniques to investigate a number of carefully selected targets within its focused licence portfolio.
The Company is also actively investigating a range of new opportunities in precious and strategic metals and will update the market on new opportunities as and when appropriate.
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